Financial Planning
This is a snapshot of your financial position (assets & liabilities).
What is a balance sheet?
A plan for spending and saving money.
What is a budget
Money earned before deductions.
What is gross pay?
Money set aside for future use.
What are savings
You track spending daily—this is called?
What is budgeting
This shows money coming in and out
What is a cash flow statement?
Money left after expenses.
What is disposable income?
Money after taxes.
What is net pay?
Earning interest on interest.
What is compound interest
You save 10% of income—this shows?
What is good financial planning
A long-term financial goal example
What is saving for retirement (or college)?
The difference between fixed and variable expenses
→ What are expenses that stay the same vs change?
Mandatory federal retirement tax.
What is social security
Higher risk, higher return investments.
What are stocks
Buying stocks without research is considered?
What is high risk
This helps guide financial decisions based on priorities.
What is a financial plan?
This type of budget adjusts each month.
What is a flexible budget?
This tax funds healthcare for seniors.
What is medicare
Lower risk investment option.
What are bonds
Best first step in managing money.
What is setting financial goals
This process includes setting goals, implementing, and reviewing.
What is the financial planning process?
This budgeting rule uses percentages (50/30/20).
What is the 50/30/20 budgeting rule?
This form shows yearly earnings and taxes.
What is a W-2
Spreading money across investments.
What is diversification
This financial tool helps you plan spending, avoid debt, and reach goals.
What is a budget